Month: April 2023

Source: United States Department of Justice News

GREENEVILLE, Tenn. – On April 7, 2023, Robert Lee Allen, Jr., also known as “Skeeter,” 55 of Morristown, Tennessee, was sentenced to 210 months in prison for being a felon in possession of a firearm by the Honorable Clifton L.  Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.  

As part of the plea agreement filed with the court, Allen agreed to plead guilty to an indictment charging him with possession of a firearm by a felon, in violation of 18 U.S.C. §922(g)(3).  Upon release from his imprisonment, Allen will be on supervised release for 5 years.

As set forth in the plea agreement filed with the court, Allen has prior, violent felony convictions for Second Degree Murder, Aggravated Assault, Aggravated Robbery, and Aggravated Burglary.  Allen agreed that, on February 14, 2022, he struck his spouse with a firearm and was arrested the next day for domestic assault.  During a search of his vehicle, the firearm he used to assault his spouse was located. The firearm was stolen from Cocke County, TN.  Allen admitted that he had acquired the firearm from another felon through a trade of methamphetamine and heroin in exchange for the firearm.

This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

“This sentence sends a powerful message to those with a violent, felony history who continue to arm themselves,” said United States Attorney Francis M. Hamilton III.  “This case is part of the Department of Justice’s comprehensive strategy to target and prosecute the most serious offenders who pose the greatest threats to safety and peace within the community.”

“This was extremely great work done by the individuals that took part in this investigation.  There is one less criminal off our streets.  The ATF will continue to use all of our resources to disrupt the illegal possession of firearms, distribution of narcotics and other acts of violence within our community,” said ATF Special Agent in Charge Marcus Watson.

Assistant U.S. Attorney B. Todd Martin represented the United States.

This case also was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone.  On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

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Source: United States Department of Justice Criminal Division

A Georgia man was sentenced today to three years and 10 months in prison for his roles in two bribery conspiracies – one related to a U.S. military contracts fraud scheme and one related to a Department of State visa fraud scheme.

According to court documents, Orlando Clark, 57, of Smyrna, was a manager of projects who deployed to Afghanistan to evaluate bids for U.S.-funded reconstruction contracts awarded by the U.S. military in 2011 and 2012. At that time, Clark and co-conspirator Todd Coleman, an analyst at a different U.S. company who also deployed to Afghanistan, received approximately $400,000 in bribes from an Afghan company. The bribes were paid in return for Clark and Coleman assisting the company in obtaining millions of dollars through at least 10 contracts that involved the construction of an Afghan police station and a security checkpoint for U.S. forces.

To conceal their conduct, Clark and Coleman registered fictitious companies in Georgia and opened bank accounts to which bribes were sent via wire transfers from Afghanistan. Clark and Coleman also created false invoices to make it appear as though they were involved in a car-exporting business in the United Arab Emirates. In reality, Clark and Coleman used the bribe payments to purchase personal items, such as BMW cars. During the scheme, Coleman and Clark also travelled to the United Arab Emirates to receive cash bribes, which they smuggled into the United States without declaring the currency.

In addition, between 2015 and 2020, Clark also received bribes to sign false letters of recommendation for visas authorized for Afghan nationals who worked as translators with U.S. forces in Afghanistan. Clark signed over 10 letters in which he falsely claimed to have supervised the applicants and in which he stated, without any factual basis, that he had no reason to be believe that they posed a threat to U.S. national security. 

On Feb. 9, Coleman was sentenced to two years and nine months in prison for his role in the U.S. military contracts bribery scheme.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia, Inspector General John F. Sopko of the Special Inspector General for Afghanistan Reconstruction (SIGAR), Inspector General Robert P. Storch of the Department of Defense, Special Agent in Charge Stanley A. Newell of the Defense Criminal Investigative Service (DCIS) Transnational Operations Field Office, and Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office made the announcement.

The SIGAR, DCIS, and NCIS investigated the case.

Trial Attorney Matt Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Russell Phillips for the Northern District of Georgia prosecuted the case.

Source: United States Department of Justice News

TALLAHASSEE, FLORIDA – Louis Paiva, Jr., 29, of Dearborn, Michigan (formerly of Orlando, Florida), was sentenced to 6 months in federal prison after having pleaded guilty to one count of theft of public money. Jason R. Coody, United States Attorney for the Northern District of Florida announced the sentence.

“The theft of any amount of taxpayer funds is inexcusable, especially when the public trust is violation by a government employee,” said U.S. Attorney Coody. “Today’s sentence both punishes the defendant’s criminal conduct and should serve as a significant deterrent to others who would steal from their fellow citizens to unlawfully enrich themselves. With our law enforcement partners, we remain committed to investigating and prosecuting those who engage in acts of covid-related fraud.”

The Department of Homeland Security (DHS), Office of Inspector General (OIG) COVID Fraud Unit conducted an investigation focused on identifying DHS employees who had received Unemployment Insurance (UI) benefits while also being paid by DHS. The investigation revealed that between March 15, 2020, and March 8, 2021, a total of $16,435.00 in UI assistance (including COVID-19 pandemic relief benefits) was deposited into a bank account that was used by Paiva.  During this timeframe, Paiva worked as a Transportation Security Officer for the Transportation Security Administration (TSA) at the Orlando International Airport in Orlando, Florida. Records obtained from the Florida Department of Economic Opportunity (FL-DEO), which administered the UI program in Florida, revealed that Paiva submitted approximately 24 applications and recertifications to FL-DEO in which he falsely stated that he was not a federal civilian employee, or that he did not work or earn money during the applicable timeframes.

“Federal employees are entrusted to protect the integrity of our programs,” said DHS Inspector General Joseph V. Cuffari. “Today’s sentencing sends a clear message that those who betray that trust will be held accountable for their actions.”

Paiva’s prison sentence will be followed by 2 years’ supervised release. The Court also ordered Paiva to pay $16,435.00 in restitution to the FL-DEO.

This conviction was the result of a joint investigation conducted by Department of Homeland Security-Office of Inspector General and the Florida Department of Economic Opportunity. Assistant United States Attorney Justin M. Keen prosecuted the case. 

In March 2020, the President signed the Families First Coronavirus Response Act and the Coronavirus Aid, Relief, and Economic Security Act, which expanded states’ ability to provide UI for many workers impacted by COVID-19, including for workers who were not ordinarily eligible for benefits.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

Source: United States Department of Justice News

            WASHINGTON — A New Mexico man has been arrested on felony charges, including assaulting a law enforcement officer, for his actions during the breach of the U.S. Capitol on Jan. 6, 2021. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.

            Rockne Earles, 62, of Chama, New Mexico, formerly of Oriska, North Dakota, is charged in a criminal complaint filed in the District of Columbia with assaulting, resisting, or impeding officers, civil disorder, both felonies, and the misdemeanor charges of entering and remaining in a restricted building or grounds, disorderly and disruptive conduct in a restricted building or grounds, engaging in physical violence in a restricted building or grounds, disorderly conduct in a Capitol building, act of physical violence in the Capitol grounds or buildings, and parading, demonstrating, or picketing in a Capitol building. He was arrested yesterday in Chama, New Mexico. He is expected to make his initial appearance today in the District of New Mexico.

            According to court documents, on Jan. 6, 2021, Earles went to the West Front of the U.S. Capitol. In a publicly available video, Earles is seen grabbing and throwing a U.S. Capitol Police Officer (Victim Officer 1) against the Northwest stairs underneath the West Front scaffolding outside the U.S. Capitol Building. In the video, Earles grabs and throws Victim Officer 1 to the ground using what appears to be a significant amount of force. Two other rioters joined Earles in shoving and assaulting Victim Officer 1. Victim Officer 1 landed on the steps and then attempted to escape away from the rioters. Based on preceding and subsequent events, this assault is believed to have occurred between approximately 1:50 p.m. and 2:10 p.m. on January 6, 2021.

            After being contacted by law enforcement, Victim Officer 1 recalled being assaulted numerous times on January 6, 2021, including being struck with a flagpole by an unidentified male, being knocked to the ground by three men, and being hit in the head. As result of the riots on January 6, 2021, including this incident, Victim Officer 1 was concussed, treated for medical injuries at the hospital, and out of work for 45 days.

            Law enforcement reviewed numerous surveillance videos from the U.S. Capitol building which show Earles physically inside the U.S. Capitol between approximately 2:17 p.m. and 2:44 p.m. on January 6, 2021. Based on the surveillance video footage, Earles appears to have remained in the U.S. Capitol building for approximately 27 minutes.

            This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the District of New Mexico.

            The case is being investigated by the FBI’s Albuquerque, Minneapolis and Washington Field Offices, which identified Earles as #425 on its seeking information photos. Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department.

            In the 27 months since Jan. 6, 2021, more than 1,000 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 320 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing. 

            Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

            A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Department of Justice News

Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Thomas Fattorusso, the Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced the unsealing of a four-count Indictment charging LARS WINKELBAUER, ABILASH KURIEN, CARLTON LLEWELLYN, ROBERT SCHIRMER, SKYE XU, BENJAMIN WEI, a/k/a/ “Ben Wei,” ALVARO LOPEZ, FABIOLA CINO, ORLANDO WONG, and PATRICK LAU, a/k/a “Pat Lau,” in connection with a massive scheme to defraud Polar Air Cargo Worldwide, Inc. (“Polar”), a leading cargo airline, of tens of millions of dollars in revenue and the honest services of its employees.  Nine defendants were arrested today.  KURIEN, LLEWELLYN, SCHIRMER, and LAU will be presented in federal court in Manhattan this afternoon.  WEI and WONG will be presented later today in federal court in the Central District of California.  LOPEZ and CINO will be presented later today in federal court in the Southern District of Florida.  WINKELBAUER was arrested today in Thailand and is pending extradition to the United States.  SKYE XU remains at large.

U.S. Attorney Damian Williams said: “As alleged, the 10 defendants charged today conducted a widespread scheme that tainted nearly every aspect of Polar Air Cargo Worldwide’s operations and that cost the company an estimated $52 million in losses.  The defendants, all of whom were either employed in high-level positions by Polar or were vendors reliant on business arrangements with Polar, allegedly showed a blatant disregard for the integrity of their companies in favor of lining their own pockets.  Their pervasive fraud ends today, and each defendant now faces substantial prison time for their alleged crimes.” 

FBI Assistant Director Michael J. Driscoll said: “For more than a decade, the defendants allegedly utilized a complex set of schemes at the expense of Polar Air to line their own pockets.  The indictments today serve as a reminder to any unscrupulous actors attempting complex frauds – the FBI will hold you accountable in the criminal justice system.”   

IRS-CI Special Agent in Charge Thomas Fattorusso said: “Today’s charges are the opening salvo against a decade-long scam by a small group of Polar’s executives and others that allegedly tainted every aspect of its business operations.  These arrests and charges today will hopefully begin the process of righting the alleged wrongs of those charged and put the company on a path to integrity, which its hardworking employees and legitimate customers deserve.”

As alleged in the Indictment:[1]

From at least in or about 2009 through in or about July 2021, LARS WINKELBAUER, ABILASH KURIEN, CARLTON LLEWELLYN, ROBERT SCHIRMER, SKYE XU, BENJAMIN WEI, ALVARO LOPEZ, FABIOLA CINO, ORLANDO WONG, and PATRICK LAU participated in a massive scheme to defraud Polar.  At all relevant times, WINKELBAUER, KURIEN, LLEWELLYN, and SCHIRMER (collectively, the “Executive Defendants”) were senior executives of Polar.  XU, WEI, LOPEZ, CINO, WONG, and LAU (collectively, the “Vendor Defendants”) owned and operated various Polar vendors and customers.  The Executive Defendants agreed to accept millions of dollars in kickbacks from the Vendor Defendants and also reaped substantial financial benefits as a result of their secret ownership interests in certain Polar vendors, in exchange for ensuring that those vendors received favorable business arrangements with Polar.  The fraud they perpetrated — which involved a substantial portion of Polar’s senior management and at least 10 customers and vendors of Polar — led to pervasive corruption of Polar’s business, touching nearly every aspect of the company’s operations, for over a decade. 

Polar’s business involved numerous outside vendors and customers.  Polar relied heavily on third-party, general sales agents (“GSAs”) in the United States to sell cargo space on its planes.  In turn, the GSAs hired by Polar often sold available cargo space to freight forwarding vendors, which had been hired by downstream customers to coordinate transportation logistics for large quantities of goods.  Polar also contracted with ground handling vendors to load and unload cargo and with trucking vendors to transport cargo from domestic locations to the appropriate airports.  In addition, Polar contracted with other partners for a variety of business reasons, including to secure cargo space on airline routes not serviced by Polar flights.  The scheme to defraud Polar touched on each aspect of these operations.

Together, the Executive Defendants and the Vendor Defendants defrauded Polar by corrupting Polar’s relationships with GSAs, freight forwarders, and other vendors, including those providing ground handling and trucking services.  Unbeknownst to Polar, the Executive Defendants utilized their positions within Polar to secure, among other things, favorable contracts, valuable cargo space, favorable shipping rates, and enrollment in various incentive programs for the Vendor Defendants and their entities.  In return, the Vendor Defendants paid the Executive Defendants kickbacks in various forms, including, for example, in payments calculated per kilo of cargo shipped with Polar or as a percentage of the revenue earned as a result of a vendor’s relationship with Polar.  In addition, the Executive Defendants, in various combinations, held concealed ownership positions in certain companies which contracted with Polar and that were, in at least one case, associated with the Vendor Defendants.  As a result, the Executive Defendants received ownership distributions based, in large part, on revenue derived from contracts with Polar — contracts that had been secured and, often times, renewed due to, in large part, the recommendation of the Executive Defendants with conflicts of interest.

To conceal the kickbacks and conflicted ownership interests from Polar, and thereby to continue the fraud scheme, WINKELBAUER, KURIEN, LLEWELLYN, and SCHIRMER often directed the kickbacks and ownership distributions be paid to limited liability companies with non-descript names that they, in fact, controlled.  Additionally, the Executive Defendants communicated amongst themselves and with the Vendor Defendants about the scheme primarily using personal email accounts, while the Vendor Defendants conducted official Polar business with the Executive Defendants primarily using their professional email accounts. 

As a result of the scheme, the Executive Defendants, along with two co-conspirators who also worked as senior executives at Polar, received unlawful payments, either directly or through various limited liability companies they controlled, in excess of approximately $23 million in kickback payments or disbursements received as a result of their ownership of conflicted companies.  Additionally, a financial analysis conducted at Polar’s direction estimates that, as a result of the fraudulent scheme, Polar suffered at least approximately $52 million in losses between in or about 2009 and in or about July 2021.

In the Summer of 2021, Polar discovered documentary evidence of the conflicted ownership arrangements and kickback agreements.  Shortly thereafter, Polar terminated the employment of WINKELBAUER, KURIEN, LLEWELLYN, and SCHIRMER, and reported the conduct to law enforcement authorities.  Polar has continued to cooperate with law enforcement authorities through the investigation.

*                *                *

WINKELBAUER, 47, of Bangkok, Thailand, KURIEN, 45, of Wilton, Connecticut, LLEWELLYN, 55, of Highland Mills, New York, SCHIRMER, 58, of Port Jefferson Station, New York, XU, 40, of West Covina, California, WEI, 58, of San Marino, California, LOPEZ, 50, of Aventura, Florida, CINO, 45, of Aventura, Florida, WONG, 60, of Manhattan Beach, California, and LAU, 43, of Flushing, New York, are each charged with one count of conspiracy to commit wire fraud and honest services wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.  WINKELBAUER, KURIEN, LLEWELLYN, and SCHIRMER are also charged with one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison.   

The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.

Mr. Williams praised the outstanding work of the FBI and IRS-CI.  Mr. Williams also thanked the United States Attorney’s Offices for the Central District of California and the Southern District of Florida as well as the Justice Department’s Office of International Affairs and Thai authorities for their assistance in the investigation. 

The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Katherine Reilly and Danielle Kudla are in charge of the prosecution.

The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.